#Fed is expected to signal a further rate cut at today’s Jackson Hole Symposium. An OKEx #analyst gives a $BTC target by this year’s end. 📰 More insights: https://t.co/Krun0cIal7

— OKEx (@OKEx) August 23, 2019

OKEx Explains $14,000 Bitcoin Price Target

OKEx predicts that the price of bitcoin is on track to move higher in response to global monetary policy, which seems biased toward easing in light of fragile economic growth.

The cryptocurrency exchange said:

“With additional rate cuts on the horizon and global central banks are jumping on the easing bandwagon, the demand for hard assets like gold is expected to surge, and that inflation-hedging drive could push the prices of bitcoin to $14,000 levels by the end of the year.”

OKEx observed that three central banks have slashed interest rates just this month.

The exchange also points out that there’s a virtually-100% chance of the Federal Reserve reducing its benchmark target again in September at the next FOMC policy meeting.

The market has priced in a 100% probability of a Fed rate cut in September. | Source: CME FedWatch Tool

Bitcoin shot up 12% between the June and July FOMC meetings, as anticipation of a rate cut increased.

The Fed then slashed rates by 25 basis points toward the end of July, and OKEx has based its estimate on this relationship – even though the bitcoin price barely budged when the rate cut was formally announced.

The cryptocurrency exchange is assuming that a 25 basis rate point cut could boost the bitcoin price by 12%. That’s great for crypto bulls since traders currently expect as many as three more rate reductions in 2019.